Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) stepped up the amount of bitcoin or equivalents mined in the past month as operations at its new Helios facility in Texas continued to gear up.
During June, 179 bitcoin or equivalents (BTC) were mined, up from 124 BTC in May and 166 in April.
The company said this reflected its increasing total hashrate capacity and greater uptime at Helios than the month before, as more S19J Pro machines from Bitmain were delivered and installed, keeping it “on track” to install all 20,000 machines as agreed.
Separately, 5,000 S19J Pro machines have also so far been installed as of June, under a swap agreement with Core Scientific.
Mining revenue in June was £3.38mln (US$4.35mln), based on prevailing prices, up from £3.07mln in May.
This was generated at a mining margin of 50%, down from May’s 55%, which Argo said was driven primarily by the reduced price of bitcoin and higher electricity costs at Helios.
Argo said that, since late 2021, it has been using derivatives to limit downside risk and in June hired a full-time derivatives trader to its team.
At the end of June, 1,953 bitcoin were on the balance sheet, of which 210 were BTC equivalents, with 637 bitcoin having been sold at an average price of approximately US$24,500 during the month.
Argos said the proceeds were used to fund operating expenses and growth capital, as well as to reduce obligations under its Galaxy Digital (TSX-V:GLXY) BTC-backed loan agreement.
“Throughout 2022, the company has been selling a significant portion of monthly bitcoin production, steadily reducing its exposure to its BTC-backed loan, and strengthening its balance sheet.”
With the outstanding loan balance standing at US$22mln, the company said it is confident that it possesses sufficient liquidity to avoid any potential liquidation of the BTC-backed loan if the bitcoin price continues to decline.
“Ongoing efforts to significantly upscale Argo's mining operations are reflected in this month's numbers and our increased hashrate," said Peter Wall, Argo's chief executive.
“These numbers, along with our continued installations of the S19J Pro machines, put us in a solid position with regards to our mining capacity.”
He added: “We believe the company is well positioned to navigate the current market conditions and further increase our efficiencies."